Abu Dhabi: The UAE Central Bank has issued new guidelines on anti-money laundering and combating financing of terrorism.
The guidance focuses on the money laundering and the financing of terrorism risks relating to payments and preventive measures that licensed financial institutions (LFIs) should apply in order to mitigate risks.
“As new payment products and services might bring risks to the financial system because of the rapid movement of funds between payment participants and across borders, and LFIs might be exposed to participants licensed by the CBUAE and those operating globally, LFIs should take a risk-based approach to mitigate and manage money laundering and the financing of terrorism risks,” the Central Bank said.
LFIs need to comply with the requirements within one month.
They should conduct a regular risk assessment to cover all payment products, services, relationships and exposure to domestic and foreign payment sector participants, the regulator said.
The Central Bank has also asked LFIs to not process any payments for a correspondent unless they are entirely confident that the correspondent conducts appropriate screening.
“These preventive measures should be integrated into an LFI’s AML/CFT compliance programme and supported with governance and training,” the Central Bank said.
Khalid Mohammed Balama, Governor of CBUAE, said: “We are committed to implementing high regulatory control over LFIs and their payment operations, including products, services and exposure. The new guidance ensures that all LFIs in the UAE understand their AML/CFT responsibilities and have compliance programmes to mitigate risks payment-related risks.”
